AB 1658, as amended, Jones-Sawyer. Foster care: consumer credit reports: security freeze.
Existing law provides for child welfare services, which are public social services directed toward, among other purposes, protecting and promoting the welfare of all children, including those in foster care placement. Existing law declares the policy of the Legislature that all children in foster care be free from abuse. Existing law requires a county welfare department, county probation department, or the State Department of Social Services to request a consumer credit disclosure on behalf of a child in a foster care placement in the county when the child reaches his or her 16th birthday, and each year thereafter while the child is under the jurisdiction of the juvenile court.
This bill would additionally require, if the child is found to have an active consumer credit report, the county social worker or probation officer to immediately notify the 3 major credit reporting agencies of the child’s placement in foster care and request the placement of a freeze on the report, except as specified. The bill would require, if the child does not have an active consumer credit report, the county social worker or probation officer to provide the credit reporting agencies with information necessary to preclude the child from having a credit account created in his or her name, except as specified.
The bill would require a county welfare department or county probation department, upon entry into foster care of a childbegin delete under 16end deletebegin insert 10 to 15end insert years of age,begin insert inclusive,end insert to notify each of the 3 major credit reporting agency
that the child is in foster care, to discover whether the foster child has an active consumer credit report, and, if there is an active report, to immediately require that the credit reporting agencies place a freeze on the child’s report and to work with the Department of Justice’s Privacy Enforcement and Protection Unit to resolve any credit irregularities or negative actions that have been discovered. By imposing new duties on county officials, the bill would impose a state-mandated local program.
The bill would require the department, no later than July 1, 2015, and in consultation with specified entities, to issue instructions to counties via an all-county letter or similar instruction to do specified things, including providing the circumstances under which a freeze of a foster child’s credit report is lifted.
Existing law, the Consumer Credit Reporting Agencies Act, defines and regulates consumer credit reports and permits a consumer to place a security freeze, defined as a notice placed in a consumer’s credit report, at the request of the consumer, and subject to certain exceptions, that prohibits the consumer credit reporting agency from releasing the consumer’s credit report or any information from it without the express authorization of the consumer, on his or her credit report by making a request in writing by certified mail to a consumer credit reporting agency.
This bill would require, after notification of placement by a county welfare or probation department and upon request of the department, a consumer credit reporting agency to, among other things, notify the county welfare or probation department of whether the child has an active consumer credit record and place a security freeze on the credit report of a child placed in foster care if the child is found to have an active consumer credit record.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 1785.11.7 is added to the Civil Code, to
2read:
(a) In furthering the policy of the State of California
4that children in foster care have the right to a life that is free from
5abuse,
following notification by a county welfare or probation
6department of the placement of a childbegin insert 10 to 15 years of age,
7inclusive,end insert into foster care pursuant to Section 10618.6 of the
8Welfare and Institutions Code, a consumer credit reporting agency,
9upon request of the county welfare or probation department, shall
10
do all of the following:
11(1) Notify the county welfare or probation department of
12whether the child placed in foster care has an active consumer
13credit record.
14(2) If the child is found to have an active consumer credit record,
15place a security freeze on the child’s credit report pursuant to
16Section 1785.11.2.
17(3) If the child is not found to have an active consumer credit
18report, preclude the child’s information from being used to create
19a credit account in his or her name.
20(b) This section does not apply to a check services company, a
21fraud prevention services company, or a deposit account
22information service company in accordance with
Section 1785.11.6.
Section 10618.6 of the Welfare and Institutions Code
24 is amended to read:
(a) (1) The Legislature finds and declares that
26children in foster care are at greater risk of identity theft and having
27negative findings placed on their consumer credit report due to the
28unlawful actions of others. The Legislature further recognizes that
P4 1a child’s consumer credit report is more vulnerable while in foster
2care, and a child in foster care is more likely to not discover he or
3she is a victim of identity theft until he or she applies for a job,
4opens a financial account, or is notified by law enforcement that
5his or her personal information has been stolen.
6(2) In order to help reduce the rates by which a child in foster
7care experiences identity
theft, a county welfare department or
8county probation department shall, upon entry into foster care of
9a childbegin delete under 16end deletebegin insert 10 to 15end insert years of age,begin insert inclusive,end insert do all of the
10following:
11(A) Notify each of the three major credit reporting agencies that
12the child is in foster care.
13(B) Discover whether the foster child has an active consumer
14credit report.
15(C) If a foster child is found to have an active consumer credit
16report, the county welfare or probation
department shall,
17commencing July 1, 2015, do both of the following:
18(i) Immediately request that the credit reporting agencies place
19a freeze on the child’s report.
20(ii) Work with the Department of Justice’s Privacy Enforcement
21and Protection Unit to resolve any credit irregularities or negative
22actions that have been discovered on the foster child’s credit report.
23(D) For foster children who have not been found to have an
24active consumer credit report, provide the credit reporting agencies
25with information necessary to preclude a foster child from having
26a credit account created in his or her name.
27(b) Pursuant to the federal Child and Family Services
28Improvement
and Innovation Act of 2011, when a child in a foster
29care placement reaches his or her 16th birthday, and each year
30thereafter, while the child is under the jurisdiction of the juvenile
31court, the county welfare department, county probation department,
32begin delete orend deletebegin insert or,end insert if an automated process is available, the State Department
33of Social Services, shall request a consumer credit disclosure from
34each of the three major credit reporting agencies, pursuant to the
35free annual disclosure provision of the federal Fair Credit Reporting
36Act, on the child’s behalf, notwithstanding any other law.
37(1) If a child in foster care placement is found to have an active
38consumer credit report, the
county social worker or probation
39officer shall immediately notify the three major credit reporting
P5 1agencies of the child’s placement in foster care and request the
2placement of a freeze on the report, unless the child declines.
3(2) If a child in foster care placement is not found to have an
4active consumer credit report, the county social worker or probation
5officer shall provide the credit reporting agencies with information
6necessary to preclude the child from having a credit account created
7in his or her name, unless the child declines.
8(c) (1) For a nonminor dependent, the county welfare
9department or county probation department shall assist the young
10adult, on a yearly basis while the nonminor dependent is under the
11jurisdiction of the juvenile court, with
requesting the consumer
12credit disclosure from each of the three major credit reporting
13agencies, pursuant to the free annual disclosure provision of the
14federal Fair Credit Reporting Act.
15(2) If a nonminor dependent is found to have an active consumer
16credit report, the county social worker or probation officer shall
17ensure that the nonminor dependent receives assistance with the
18placement of a freeze on his or her credit report.
19(d) The county social worker or county probation officer shall
20ensure that the child or nonminor dependent receives assistance
21with interpreting the consumer credit disclosure and resolving any
22inaccuracies. The assistance may include, but is not limited to,
23referring the youth to a governmental or nonprofit agency that
24provides consumer credit
services. This section does not require
25the social worker or probation officer to be the individual providing
26the direct assistance with interpreting the consumer credit
27disclosure or resolving the inaccuracies.
28(e) Notwithstanding any other law, in order to request a
29consumer credit disclosure for youth
pursuant to this section, the
30county welfare department, county probation department, or, if an
31automated process is available, the State Department of Social
32Services may release necessary information to a credit reporting
33agency.
34(f) No later than July 1, 2015, the department shall, in
35consultation with the Administrative Office of the Courts, the
36Department of Justice’s Privacy Enforcement and Protection Unit,
37the California Welfare Directors Association, the County Probation
38Officers of California, youth-based organizations made up of
39current and former foster children, and consumer, privacy, and
40foster children advocacy organizations, issue instructions to
P6 1counties via an all-county letter or similar instruction to do all of
2the following:
3(1) Provide the
circumstances under which a freeze of a foster
4child’s credit report is lifted, including when the child exits,
5emancipates, or runs away from foster care, and by whom the
6freeze can be lifted.
7(2) Provide instruction as to how a county welfare or probation
8department shall notify the three major credit reporting agencies
9that a foster child can reacquire the ability to develop credit.
10(3) Identify required processes and best practices in the
11identification and resolution of credit irregularities or negative
12actions on a foster child’s credit report, including, but not limited
13to, entering the information into the foster child’s case plan and
14notification of the juvenile court, child’s counsel, and other adults
15responsible for the child’s care, as
necessary.
If the Commission on State Mandates determines that
17this act contains costs mandated by the state, reimbursement to
18local agencies and school districts for those costs shall be made
19pursuant to Part 7 (commencing with Section 17500) of Division
204 of Title 2 of the Government Code.
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